Is Human Capital a Significant Determinant of Portugal’s FDI Attractiveness?
The paper tests whether human capital is a relevant foreign direct investment (FDI) determinant. Drawing on a large-scale survey of firms located in Portugal, and controlling for firms’ structural (i.e. size, age and industry), strategic (R&D and export intensities) and linkages (density of university contacts) variables, our key finding is that, indeed, human capital exerts a positive and significant influence on FDI attraction. Relevant policy implications emerge from the results of this study, at two main levels: (i) policies intended to stimulate human capital formation; and (ii) as regards FDI-focused policies. These policies are discussed in the light of the Portuguese case.
|Date of creation:||May 2006|
|Contact details of provider:|| Postal: Rua Dr. Roberto Frias, 4200 PORTO|
Web page: http://www.fep.up.pt/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mohnen Pierre & Hoareau Cathy, 2002.
"What type of enterprise forges close links with universities and government labs? Evidence from CIS2,"
009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Masao Nakamura & Pierre Mohnen & Cathy Hoareau, 2003. "What type of enterprise forges close links with universities and government labs? Evidence from CIS 2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 133-145.
- Cathy Hoareau & Pierre Mohnen, 2002. "What Type Of Enterprise Forges Close Links With Universities And Government Labs? Evidence From CIS 2," CIRANO Working Papers 2002s-25, CIRANO.
- Caves, Richard E, 1974. "Causes of Direct Investment: Foreign Firms' Shares in Canadian and United Kingdom Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 279-293, August.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
- Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
- Kyoji Fukao & Toshiyasu Izawa & Morio Kuninori & Toru Nakakita, 1994.
"R&D Investment and Overseas Production: An Empirical Analysis of Japan's Electric machinery Industry Based on Corporate Data,"
Discussion Paper Series
a300, Institute of Economic Research, Hitotsubashi University.
- Kyoji Fukao & Toshiyasu Izawa & Morio Kuninori & Toru Nakakita, 1994. "R&D Investment and Overseas Production: An Empirical Analysis of Japan's Electric Machinery Industry Based on Corporate Data," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 12(2), pages 1-60, December.
- Aurora A.C. Teixeira & Joana Costa, 2006.
"What type of firm forges closer innovation linkages with Portuguese Universities?,"
FEP Working Papers
207, Universidade do Porto, Faculdade de Economia do Porto.
- Aurora Teixeira & Joana Costa, 2006. "What Type of Firm Forges Closer Innovation Linkages with Portuguese Universities?," Notas Económicas, Faculty of Economics, University of Coimbra, issue 24, pages 22-47, December.
- Root, Franklin R & Ahmed, Ahmed A, 1979. "Empirical Determinants of Manufacturing Direct Foreign Investment in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 27(4), pages 751-767, July.
- Koen De Backer & Leo Sleuwaegen, 2005. "A closer look at the productivity advantage of foreign affiliates," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 17-34.
- Dirk Willem te Velde, 2002. "Government Policies for Inward Foreign Direct Investment in Developing Countries: Implications for Human Capital Formation and Income Inequality," OECD Development Centre Working Papers 193, OECD Publishing.
- Wood, Adrian & Ridao-Cano, Cristobal, 1999. "Skill, Trade, and International Inequality," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 89-119, January.
- Huilin Lin & Ryh-Song Yeh, 2005. "The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1789-1799.
- Matthew J. Slaughter, 2002. "Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?," OECD Development Centre Working Papers 192, OECD Publishing.
- Bellak, Christian, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Paper Series 862, WU Vienna University of Economics and Business.
- Noorbakhsh, Farhad & Paloni, Alberto & Youssef, Ali, 2001. "Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence," World Development, Elsevier, vol. 29(9), pages 1593-1610, September.
- Blomström, Magnus & Kokko, Ari, 2003.
"Human Capital and Inward FDI,"
EIJS Working Paper Series
167, The European Institute of Japanese Studies.
- Kamal Saggi, 2002.
"Trade, Foreign Direct Investment, and International Technology Transfer: A Survey,"
World Bank Research Observer,
World Bank Group, vol. 17(2), pages 191-235, September.
- Saggi, Kamal, 2000. "Trade, foreign direct investment, and international technology transfer : a survey," Policy Research Working Paper Series 2349, The World Bank.
- Christian Bellak, 2004.
"How Domestic and Foreign Firms Differ and Why Does it Matter?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 18(4), pages 483-514, 09.
- Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Papers wuwp087, Vienna University of Economics and Business, Department of Economics.
- Pfeffermann, G.P. & Madarassy, A., 1992. "Trends in Private Investment in Developing Countries," Papers 16, World Bank - International Finance Corporation.
- Laursen, Keld & Salter, Ammon, 2004. "Searching high and low: what types of firms use universities as a source of innovation?," Research Policy, Elsevier, vol. 33(8), pages 1201-1215, October.
- Guest Editors & Ana Teresa Tavares & Stephen Young, 2005. "FDI and multinationals: patterns, impacts and policies," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 3-16.
- Kevin H. Zhang & James R. Markusen, 1997.
"Vertical Multinationals and Host-Country Characteristics,"
NBER Working Papers
6203, National Bureau of Economic Research, Inc.
- Zhang, Kevin Honglin & Markusen, James R., 1999. "Vertical multinationals and host-country characteristics," Journal of Development Economics, Elsevier, vol. 59(2), pages 233-252, August.
- Joana Costa & Aurora A. C. Teixeira, 2005. "Universities as sources of knowledge for innovation.The case of Technology Intensive Firms in Portugal," FEP Working Papers 181, Universidade do Porto, Faculdade de Economia do Porto.
- Hanson II, John R., 1996. "Human Capital and Direct Investment in Poor Countries," Explorations in Economic History, Elsevier, vol. 33(1), pages 86-106, January.
- Almeida, Paul & Dokko, Gina & Rosenkopf, Lori, 2003. "Startup size and the mechanisms of external learning: increasing opportunity and decreasing ability?," Research Policy, Elsevier, vol. 32(2), pages 301-315, February.
- Blomström, Magnus & Globerman, Steve & Kokko, Ari, 2000. "The Determinants of Host Country Spillovers from Foreign Direct Investment," CEPR Discussion Papers 2350, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:por:fepwps:211. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.